7 Tips To Create a Spending Plan You Can Stick To

Ditched your budget again? Use these tips to build a spending plan that reflects your priorities and encourages you to reach your financial goals — and that you will stick with.

by Andrea Norris-McKnight

Where does the money go every month? That’s something many people across all age groups wonder. Whether planning a wedding, raising kids or gearing up for retirement, managing expenses can feel overwhelming. A budget helps put it all in perspective. But it’s not just about making one — it’s about sticking to it.

CFP Bonnie Sewell prefers to call it a “spending plan.” She explains, “It’s about choices—what you care about most and how much you’re willing to put toward it.” Here’s how you can create a spending plan that works for you.

7 Steps to a Budget You’ll Stick To

Budgeting is tedious, but your budget — and working toward your money goals — should excite you, not deprive you. The following tips can help you create a spending plan you can live with.

1. Make Sure Your Budget Reflects Your Financial Priorities

Tracking your spending is the first step. Look at a month’s expenses and sort them into categories, such as housing, food, transportation, entertainment, etc. Categorizing your expenses lets you see if your spending reflects what’s important to you or is going in unexpected directions.

Sewell emphasizes that your spending plan should match your priorities. “When a budget reflects personal priorities, it shifts from being a burden to something you actively choose,” she says.

2. Make Room in Your Budget for Things That Matter

Having goals keeps you focused. Whether you aim to pay off debt, build an emergency fund or save for a vacation, make sure those goals are realistic. It’s about aligning your spending choices with what you really want. As Sewell points out, “If your spending today doesn’t leave room for the things you say matter, reaching those goals will be tough.”

Don’t think you have to save everything overnight. Start small and build from there.

3. Create a Budget That Reflects Your Life, Not a Formula

Once you know where your money is going, it’s time to create a plan based on your actual income. Prioritize essentials like rent, groceries and utilities. Then, decide how much to allocate toward discretionary spending and savings.

If you’re unsure how to divide it up, a simple rule is the 50/30/20 guideline: 50% for needs, 30% for wants, and 20% for savings or debt. However, it’s key that your budget reflects your life, not someone else’s formula.

4. Make a Budget With Flexibility, Not Rigidity

Life happens, and sometimes expenses pop up or go up. Your budget needs to be adjusted accordingly. Whether it’s adding vision insurance to your healthcare plan or a hike in your electric rates, make sure your budget has the flexibility to change as necessary. It shouldn’t be so tight that changes in your expenses can throw your whole budget out of whack and cause you to throw in the towel.

Sewell suggests that if sticking to a budget is difficult, it might be because it’s too rigid or doesn’t reflect your true priorities. Adjust where needed, but always come back to your core goals.

5. Automate, Simplify and Verify

Automating savings and bill payments can reduce the temptation to overspend and take a little work out of managing your finances.

Set up automatic transfers into a savings account and automate regular bills so you don’t have to worry about missing payments. By putting saving on autopilot, you’re prioritizing your financial future without thinking about it constantly. (See How To Make “Pay Yourself First” Work for You.)

Note: Always check your monthly automatic bills to confirm the correct amounts were deducted from your bank account and credited correctly to your billers. Costly mistakes can happen on either end.

6. Check In Regularly With Your Budget and Your Partner

You won’t get your budget perfect right away, and that’s okay. The key is to check in monthly and adjust as your financial situation changes. You want to keep your spending plan aligned with your goals.

Sewell also suggests having “no penalty” conversations about money with your partner. Open discussions help you stay on track without resentment.

7. Design a Budget That Supports, Not Deprives

Your budget should be something you can live with. Don’t overcomplicate it with too many rules or unrealistic expectations. Allow for some flexibility and fun spending so it feels less like a chore.

“People forget they have permission to fund what they care about most,” Sewell says. A budget isn’t about depriving yourself. It’s about making sure your money supports what matters to you.

Will You Stick to Your Spending Plan This Time?

Creating a budget you can stick to starts with understanding your spending and aligning it with what you really value. It’s not always easy, but with the right plan, you can gain control and work toward your goals — without feeling like you’re constantly juggling finances.

Related:

• Struggling To Get Control of Your Food Budget? A Strategy That Can Help
• How To Create a Frugal Spending Plan
• Are Your Spending Priorities Out of Whack? 14 Signs That Say Yes

Reviewed September 2024

About the Author

Andrea Norris-McKnight took over as the editor of The Dollar Stretcher and After 50 Finances after working under the site founder and previous editor for almost 15 years. She has also written for Money.com, GOBankingRates.com, HavenLife.com and The Sacramento Bee.